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First Investors Financial Services Group incorrectly re... First Investors Financial Services Group incorrectly reported information for thousands of customers. (Getty)
The auto financing company First Investors Financial Services Group was fined $2.75 million on Wednesday by the Consumer Financial Protection Bureau for reporting incorrect information to credit agencies that affected thousands of customers.

The Texas-based company must pay the fine and fix affected customers' information, according to the Washington Post. The problem started with a glitch in a computer system. First Investors knew about the problem in April 2010 and alerted the company that sold them the system that the reporting was wrong, but took no action to fix the incorrect reporting, violating the Fair Credit Reporting Acts.

The errors did serious damage to the credit scores of customers who already had shaky credit and were considered 'subprime.' First Investors understated how much consumers were paying on their debt, overstated the amount due and inflated the number of late payments. In one instance, First Investors reported a customer had been delinquent 11 times when really it was only twice. In some cases, First Investors reported that cars had been repossessed when the cars had actually been surrendered by their owners, which looks very different on a credit report.

First Investors Financial Services Group are required to fix the reporting problem and provide free credit reports for customers so they can check if all errors have been fixed.




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    • 1 Second Ago
  • 12 Comments
      elobel1044
      • 6 Months Ago
      Enough with the fines! Since the supreme court ruled that corporations are people and when people commit crimes they go to prison, so should business executives! The presidents, CEO's and board of director members who approve the programs need to serve prison time. Put them in prison and you will see a dramatic reduction in bad things coming from corporations!
      sterlingbykenny
      • 6 Months Ago
      Selling. Financing. Marketing. Advertising. all bullshit people doing bullshit work in a bullshit country. The chinese are putting anti-freeze in all our water and food. and we buy it.
        • 6 Months Ago
        @sterlingbykenny
        What on earth are you talking about? Do you even know?
        Luna
        • 6 Months Ago
        @sterlingbykenny
        HUH ???
      ssmutly
      • 6 Months Ago
      Incarcerate the lot of them, after the fine has been paid.. Anyone who had anything to do with it, does time..
      Madeleine
      • 6 Months Ago
      examine the three credit bureaus....they are unimpeachable for most American consumers. They have too much influence and are largely unregulated.
      dws51564
      • 6 Months Ago
      And how much of that money is going to the customers who credit was harmed? Not a dime I'm sure. Even if it cost them thousands of dollars in higher interest payments.
        Luna
        • 6 Months Ago
        @dws51564
        Good Point. Too bad the fine was so low. They should be shut down and ALL assets distributed to the people they hurt.
      • 7 Months Ago
      Real Estate appraisers should be sued and fined for property depreciation and dragging the market down. I had already two appraisals and they calculate the value of my property from fix-it-uppers and foreclosed homes, does not consider any the up grades....This should be consider a crime!!!!!
      bobcornerstone
      • 7 Months Ago
      I wish whoever invented this credit score bllsh**, had a cuckelbourough up their Azz.
      • 6 Months Ago
      too big to fail............too big to jail
      eagle6922
      • 6 Months Ago
      The whole CREDIT industry is a joke. They do more harm than good. As the above company has done. More are doing the same, but haven't been caught. Credit Scores are a joke. They help the more affluent. Experian/Equifax/Trans Union are jokes.